FEBRUARY UPDATE
Vincent Young’s 20th year
This is Vincent Young’s 20th year in business.
An insight into survivability of any Australian businesses is as follows:
- Around 77% survive past their first year;
- About 50% make it past five years; and I guess
- Roughly 10% make it past twenty years.
There is no hard data on the number of companies that survive past 5 years, but companies that last 30 years and 40 years I view with awe. This year Vincent Young will celebrate with the likes of Total Construction, Taylor Construction (each 30 years old) and Hindmarsh (45 years old). These companies represent the tall trees of the construction forest. Vincent Young is very proud to be in such company.
It’s generally understood that the longer a business operates, the more challenging it becomes to sustain due to various factors like market competition, evolving consumer preferences and economic changes. That is, the older a company gets the less agile it becomes.
Agility in Tough Times – Trade Credit Insurance
In tough economic times one must understand your company’s exposure to risk. In order to maintain Vincent Young’s unique agility, we have recently examined trade credit insurance to set off some of its unusual creditor risk. It is said:
Trade credit insurance enables you to mitigate customer insolvency risk. This is particularly important in times of economic downturn, as it helps preserve your cash flow and allows your business to continue operating without being significantly impacted by unpaid debts or customer bankruptcy.
Trade credit insurance can now be purchased by professional services firms and not just suppliers of goods. Insureds are able to claim on trade credit insurance policies where a customer fails to pay their outstanding invoices and enters external administration.
Regardless of your company’s age, be agile. You have to think outside of the box. This type of insurance is what out of the box thinking looks like.
Brett Vincent, Partner
CHRISTMAS FUNCTION 2024
The Vincent Young team enjoying a hard earned Christmas lunch at The Centennial Hotel in December 2024.
CONSTRUCTION
The Practical Management of Risk under the Design and Building Practitioners Act 2020 (NSW)
With the enactment of the Design and Building Practitioners Act 2020 (NSW) (‘the DBP Act’) and Design and Building Practitioners Regulations 2021 (‘the DBP Regulations’) the construction industry and lawyers alike are struggling to grapple with the application, scope and consequences of the imposition of the duty of care by operation of section 37 of the DBP Act.
Notwithstanding the detailed provisions of the DBP Act, codes of conduct and other requirements specified in the DBP Regulations, uncertainty persists in the industry as to how, practically, does one comply with the obligations under the DBP Act and minimise risk of personal liability.
The answer may be right under your nose. Get on top of the Australian Standard on risk management AS ISO 31000:2018, then dust of your OH&S policy and develop a management structure that identifies relevant risks and assists you to take reasonable steps to avoid or mitigate those risks.
COMMERCIAL & INSOLVENCY
A reminder – what does using “reasonable endeavours” really mean?
A promisor in an agreement is often required to use “reasonable endeavours” to comply with an obligation, but what does that term really mean?
The key principles in Electricity Generation Corporation v Woodside Energy Ltd [2014] HCA 7 remain relevant
Electricity Generation Corporation v Woodside Energy Ltd [2014] HCA 7 remains the most relevant High Court case in determining the standard of “reasonable endeavours” in a commercial contract.
PROPERTY & PROJECTS
The newly introduced Property Developers Act 2024 (ACT)
Changes to the foreign resident capital gains withholding (FRCGW) regime are effective on and from 1 January 2025.
All parties to a real property transaction in Australia must ensure timely compliance with the changes.
Application
The changes apply to all acquisitions occurring on or after 1 January 2025.
An acquisition is taken to occur on the date of contract.
UDIA APPOINTMENT
Mike Ellis joins UDIA committee
Property + Projects Partner, Mike Ellis, has been appointed to the UDIA NSW Urban Renewal & Infill Committee for 2025.
Mike is one of the most experienced property lawyers in the industry and is excited to continue his involvement at Committee level with the UDIA having served last year on the UDIA NSW Urban Renewal, Build To Rent, Transport Oriented Development and Local Town Centres Committee.
The committee is focussed on improving the development in existing parts of the city including urban renewal and regeneration, apartments, mixed-use and housing diversity. It advocates for improved development pathways and planning policies which improve the feasibility of proposed areas, giving the industry the flexibility to innovate and achieve affordability in the urban environment.
According to Mike: ‘The work the UDIA and its various committees undertake provide a significant contribution towards improving the pathways to increase development in housing through its liaison with government on behalf of its membership and the development community generally’.
PARTNERSHIP POWERHOUSE
New partner for Vincent Young
As of 1 January 2025, Simon Mok (second from the right) has joined the partnership team at Vincent Young.
The Vincent Young partnership team now includes (left to right) Mark Irwin, David Greenberg, Brett Vincent, Vick Tan, Simon Mok and Mike Ellis. Simon’s appointment makes our team one of the most specialised, and experienced construction, commercial and property teams in the Sydney market.